CITY COUNCIL WORK SESSION MEETING AGENDA August 6, :30 6:30pm

Transcription

1 CITY COUNCIL WORK SESSION MEETING AGENDA August 6, :30 6:30pm 1) Call to Order 2) 2019 Budget and Preliminary Levy Discussion a) Todd Hagen Ehlers Financing Consultant 3) Adjourn

2 CITY OF MINNETRISTA REQUEST FOR CITY COUNCIL ACTION/DISCUSSION Subject: 2019 Budget and Preliminary Levy Discussion Prepared By: Brian Grimm, Finance Director on behalf of the Department Manager Budget Working Group Meeting Date: August 6, 2018 Staff has worked diligently the last few months to create a proposed 2019 General Fund Summary, Capital Improvement Plan and Preliminary Levy. The above documents are included in the packet. A PowerPoint presentation will be given by staff at the meeting that will explain the information in the packet and how they affect the general fund, CIP Plan, preliminary levy and other variables in greater detail. Staff will also present some comparative, historical, and trend information through chart and graphical analysis. Todd Hagen from Ehlers and Associates will also be at the meeting to talk a little about financing type items for roads, capital projects, etc and be able to answer questions regarding those items. As you can see in the packet items, the 1 st sheet that has all the components of the proposed levy combined has an increase of 6.54% (6.72 % net levy increase) from It is made up of several factors, they include: - Spending additional dollars on roads in conjunction with our pavement management plan and maintenance of gravel roads. The plan has been to try and increase the amount allocated each year. - Using a combination of CIP fund balance and equipment certificates to fund needed capital equipment purchases. - General Fund levy going up a proposed couple (2.0) % based on operational commitments/items (union and non-salary adjustments, health insurance, fuel to name a few) Staff has tried to balance a preliminary levy with operational and capital needs that our City departments have. Included in the general fund summary, staff is proposing using some of our fund balance and reserves to keep the general fund levy at an inflationary increase amount. Staff is still maintaining an acceptable fund balance dollar amount and percentage to the overall general fund, fund balance. Mission Statement: The City of Minnetrista will deliver quality services in a cost effective and innovative manner and provide opportunities for a high quality of life while protecting natural resources and maintaining a rural character.

3 The second spreadsheet in regards to the total levy has a proposed increase of about 5% from 2018 to This is done by reducing the amount of the increase on the roads levy per the pavement management plan by $75,000 (increase of $50,000 roads levy vs $125,000). With the improved economy and more specifically the housing market, our preliminary numbers from Hennepin County show the City s tax capacity going up about 7.5%. This is a from a combination of values on current properties within the City increasing (based on existing sales) as well as new homes/improvements being added in the City. About 5% would be from appreciation on existing properties and about 2.5% would be attributable to new growth. With the increased valuation, (market value/tax capacity) and the above proposed tax levy options presented above, the tax rate would actually drop a little to somewhere between and 25.70% As in previous years, the City s preliminary levy will have to be certified to the County by the September 30 th deadline (actually September 28 th with how the weekend falls this year). A factor to consider is the preliminary levy, once set, can only stay the same or be reduced at the time of final certification in December. It can not be increased from the preliminary levy that is certified to the County. Recommended City Council Action: The objective of this meeting is to have a budget discussion regarding the 2019 preliminary levy. Subsequently, the goal is to have Council come to a consensus on an acceptable preliminary tax levy to approve by resolution at one of the next Council meetings to certify to the County before the September 28 th deadline. Does Recommended Action meet City Mission Statement? x Yes No Does Recommended Action meet City Goals/Priorities? x Yes No Explain: This item is a discussion on the 2019 budget and levy for funding 2019 services, operations and capital needs. Mission Statement: The City of Minnetrista will deliver quality services in a cost effective and innovative manner and provide opportunities for a high quality of life while protecting natural resources and maintaining a rural character.

4 City of Minnetrista 2019 Draft Budget General Fund Summary GENERAL FUND SUMMARY GENERAL FUND REVENUE Draft Proposed % Actual Final Budget Acutal Budget Budget Change Property Tax $ 3,240,129 $ 3,246,041 $ 3,231,251 $ 3,211,041 $ 3,275, % Licenses & Permits $ 652,035 $ 632,500 $ 624,524 $ 657,500 $ 671, % Intergovernmental $ 130,877 $ 121,800 $ 133,066 $ 116,800 $ 136, % Fines $ 47,632 $ 58,000 $ 45,202 $ 50,500 $ 51, % Other/Charges for services $ 533,861 $ 496,656 $ 478,609 $ 517,599 $ 498, % TOTAL G.F. REVENUES $ 4,604,534 $ 4,554,997 $ 4,512,652 $ 4,553,440 $ 4,632, % GENERAL FUND EXPEND. Legislative $ 33,291 $ 38,898 $ 32,954 $ 34,798 $ 31, % Administrative $ 499,598 $ 472,272 $ 518,356 $ 518,359 $ 525, % Elections $ 14,200 $ 1,000 $ 4,396 $ 14,250 $ 1, % Auditing $ 22,953 $ 23,850 $ 23,850 $ 24,500 $ 25, % Assessor $ 124,000 $ 131,000 $ 130,000 $ 140,000 $ 144, % Planning $ 248,075 $ 249,081 $ 248,135 $ 219,118 $ 215, % Legal $ 115,376 $ 99,000 $ 95,772 $ 111,000 $ 102, % Buildings $ 80,907 $ 80,597 $ 64,892 $ 81,500 $ 76, % Police $ 1,722,805 $ 1,940,455 $ 1,869,625 $ 1,992,045 $ 2,067, % Fire $ 424,413 $ 432,907 $ 436,653 $ 448,676 $ 459, % Inspections $ 171,663 $ 221,549 $ 221,049 $ 232,445 $ 234, % Engineering $ 12,168 $ 21,000 $ 12,000 $ 13,000 $ 13, % Streets $ 791,529 $ 823,308 $ 772,827 $ 834,366 $ 805, % Snow and Ice Removal $ 79,630 $ 142,077 $ 65,907 $ 121,692 $ 119, % Street Lighting $ 22,682 $ 19,000 $ 20,832 $ 23,000 $ 22, % Park Areas $ 121,672 $ 119,569 $ 115,899 $ 127,521 $ 123, % Culture and Recreation - Gillespie $ 34,000 $ 34,000 $ 34,000 $ 34,000 $ 34, % Misc. Expense $ 8,001 $ 15,000 $ 25,535 $ 15,000 $ 15, % Insurance $ 8,903 $ 10,000 $ 9,985 $ 10,000 $ 10, % Transfers $ 275,000 $ - $ 125,000 TOTAL G. F. EXPENDITURES $ 4,810,866 $ 4,874,563 $ 4,827,667 $ 4,995,270 $ 5,026, % G.F. SURPLUS/(DEFICIT) $ (206,332) $ (319,566) $ (315,015) $ (441,830) $ (394,244) Projected Positive Variance 2017 $ 35,000 **allocation of $ 125, surplus (tax levy reduction) 2016 Projected positive variance **Assigned fund balance to transfer to CIP Fund in 2017 $ (125,000.00) Enchanted Road Fund balance plus second 1/2 taxes/assessments Transfers - Administrative charges on projects $ 200, $ 200, $ 80, $ - Year End Fund Balance $ 3,012,263 $ 2,802,697 $ 2,897,248 $ 2,535,418 $ 2,141, % 57.50% 60.01% 50.76% 42.60% 2019 General Fund Summary

5 Capital Improvements Plan City of Minnetrista, Minnesota EQUIPMENT, VEHICLES TAX LEVY SUPPORTED 2019 thru 2023 Summary of Future Needs Total Equipment & Vehicles Police 82, , , , , ,000 Campus Maintenance 91,400 47,450 25,300 22,050 12, ,350 Streets 138, , , , ,500 1,150,500 Administration 48,000 35,000 $20,000 20,000 $20, , , , , , ,050 2,148,850 Funding Sources: CIP equipment certificates (bond) - other 310, , , , ,050 1,498,850 CIP/General Fund Balance 50,000 50,000 50,000 50,000 50, ,000 Tax Levy - 100, , , , ,000 Sale of equipment - CIP Reserve from 2016 General Fund Surplus - Carry over from 2016 (1 squad instead of 2) - 360, , , , ,050 2,148,850

6 CITY OF MINNETRISTA CAPITAL IMPROVEMENTS PLAN PUBLIC SAFETY VEHICLES - EQUIPMENT - EMERGENCY MANAGEMENT REPLACEMENT POLICY ITEM DESCRIPTION YRS VEHICLES & SQUAD EQUIPMENT CURRENT MILES/HRS MIN ANNUAL MILES Squad 70 - Chief (2015 FPI Utility) 45,000 45, Squad 69 - Patrol (2014 Ford Police Interceptor) Squad 68 - CSO (2014 Ford F-150 SSV) 45, Squad 72 - Supervisor/Traffic (2016 FPI Utility) 45, Squad 71 - Patrol (2015 Ford Police Interceptor Utility) 1 45, Squad 73 - Patrol (2016 FPI Utility) 1 45, Squad 74 - Patrol (2016 FPI Utility) 45, Squad 65 - Investigation (2013 Explorer) 45, Squad 76 - Patrol (2017 Interceptor Utility) Squad 77 - Patrol (2017 Interceptor Utility) Squad 67 - Investigation (2013 Police Interceptor) 45,000 Additional Misc ,000 1,000 1,000 1,000 Mobile squad 800 Mhz radio Mobile Squad Computers 0 2 8, ,000 8,000 8,000 8,000 Mobile Squad Car Printers Mobile Squad Video Systems , ,000 Vehicle scales , POLICE BUILDING EQUIPMENT Digital Finger Print & Booking photo system CIP Reserve from 2016 General Fund Surplus ## Other Software (scheduling, crime tracking, etc) Station and Range Maintenance ,000 10,000 10,000 10,000 Fitness Equipment Telecommunications equipment Copier - 5 yr replacement cycle Records software updates and video storage ID card maker replacement Building Security and monitoring LETG Mobile Software/Hardware Office Furnishings Video Equipment (non-squad) Additional Misc , ,000 1,000 1,000 1,000 MAX MILES Sub TOTAL $54,000 $112,000 $116,000 $110,000 $112,000 Capital Improvements Plan PUBLIC SAFETY EQUIPMENT - EMERGENCY MANAGEMENT PATROL EQUIPMENT & WEAPONS Squad Equipment Cases PBT's Cameras (still camera for patrol) First Aide Equipment 0 1 1, ,000 1,000 1,000 1,000 Surveilance Equipment (varda, night-vision, binoculars) 0 1 1, ,000 1,000 1,000 1,000 AED Defibrilators Speed Detection Equipment (lidar, smart trailer, laser) , Additional Misc Tactical Equipment , ,000 0

7 ITEM DESCRIPTION Firearms 0 2 2, ,000 2,000 2,000 2, Tasers 0 2 2, ,000 2,000 2,000 2,000 Training Equipment (D.T., simunitions, firearms) 0 1 1, , ,000 Animal Control Equipment Personal Protection Equipment (haz-mat or pathogen) COMMUNICATIONS EQUIPMENT Portable Radio Replacements/radio lease payments 0 20,000 20,000 20,000 20,000 20,000 Portable radio batteries Portable radio microphones Portable radio Chargers Additional Misc EMERGENCY MANAGEMENT Public Ed. And protection (CERT) EM Healy Ruff Replacement Units Additional Misc CURRENT MILES/HRS REPLACEMENT POLICY YRS MIN ANNUAL MILES MAX MILES Sub TOTAL 28,400 36,400 28,400 31,400 28,400 TOTAL of Both CIP's 82, , , , ,400 Capital Improvements Plan SUMMARY OF PUBLIC SAFETY CIP Vehicles and Squad Equipment 53, , ,000 99, ,000 Police Building Equipment 1,000 11,000 11,000 11,000 11,000 Patrol Equipment & Weapons 7,800 15,800 7,800 10,800 7,800 Communications Equipment 20,600 20,600 20,600 20,600 20,600 Emergency Management Sub TOTAL 82, , , , ,400 TOTAL $ 82,400 $ 148,400 $ 144,400 $ 141,400 $ 140,400

8 Capital Improvements Plan - Campus Maintenance Campus Security Details Security system annual maintenance $1,500 $1,500 $1,500 $1,500 $1,500 Fuel management system $20,000 $0 $0 $0 $0 Gary checking on cost ot lease; this is purchase price - 1/2 police 1/2 PW Physical Plant SUB TOTAL $21,500 $1,500 $1,500 $1,500 $1,500 HVAC-Furnace & AC Maintenance (City Hall building) $2,500 $2,600 $2,700 $2,800 $2,900 HVAC-Purchase of New AC units (City Hall building) $5,200 $2,650 $5,400 $2,750 $2,750 Current AC units purchased 2005 (10-15 yr life cycle) HVAC-Purchase of New Furnaces (City Hall building) $5,000 $5,000 $5,000 $5,000 $5,000 Current Furnaces purchased 2006 (15-20 yr life cycle) SUB TOTAL $12,700 $10,250 $13,100 $10,550 $10,650 Building Exterior Repair / Replace concrete sidewalks, curbs, steps - City Hall/PW $10,000 $10,000 $10,000 $10,000 $0 Repair / Replace concrete sidewalks, curbs, steps - Police $0 $0 $0 $0 $0 Police-Are they budgeting for this separately?? Bituminous overlay for City Hall X $40,000 $0 $0 $0 $0 SUB TOTAL $50,000 $10,000 $10,000 $10,000 $0 Building Interior New carpeting in CH offices $0 $15,000 $0 $0 $0 Repaint Entry Foyer, Hallways, and City Council Chambers $6,000 $0 $0 $0 $0 Sheet rock work only-could lower this price; PW could paint to save $ Replace hot water heaters at City Hall bathrooms (WH's in Janitor's closets) $700 $700 $700 $0 $0 PW Conference Room Technology (wall mounted monitor & connections) $500 $0 $0 $0 $0 Server Room AC system $0 $0 $0 $0 $0 Approved in 2018 Budget ADA upgrades to Lobby bathrooms (men's and woman's) $0 $10,000 $0 $0 $0 SUB TOTAL $7,200 $25,700 $700 $0 $ Campus Maintenance CIP total = $91,400 $47,450 $25,300 $22,050 $12,150

9 CITY OF MINNETRISTA PUBLIC WORKS CAPITAL IMPROVEMENT PLANS VEHICLE DESCRIPTION PUBLIC WORKS: VEHICLES Ford F-550 chasis (Sewer Utility CIP item) $65,000 Utility box body $50,000 Overhead crane $20,000 Trade in value $5,000 SUB TOTAL $0 $0 $140,000 $0 $0 REPLACEMENT POLICY CURRENT MILES/HRS YRS 5 MIN ANNUAL MILES/HOURS MAX MILES / HOURS 25, , Ford F-350 Pickup Front plow / Lights / Bed liner Trade in value 79, ,000 60, Single Axle Dump Truck (past due on the 10 year replacement schedule) Front plow & wing / Spreader / SS box / Lights / Hydraulics Trade in value / , , Ford F-550 Dump body & hoist / Plow / Sander / Lights Trade in value 10 6,000 60,000 5 CIP Reserve from 2016 General Fund Surplus Dump body & hoist / Lift gate / Lights Trade in value 10 6,000 60, Ford F-350 Pickup $60,000 Front plow / Lights / Bed liner $15,000 SUB TOTAL $0 $0 $0 $75,000 $ Ford F-550 chasis (Water Utility CIP item) $70,000 Utility box body $55,000 Overhead crane $20,000 Trade in value -$5,000 SUB TOTAL $0 $0 $0 $140,000 $0 43, ,000 60, , , Ford F-350 Pickup (New addition to the fleet) Front plow / Lights / Bed liner 10 Ford F-150 2WD Pickup Lights / Bed liner 10 6,000 60, ,000 60, Freightliner Single Axle Dump Truck Front plow & wing / Spreader / SS box / Lights / Hydraulics Trade in value 15 6, , Sterling LT-9500 Tandem Axle w/tag (¼ each - Street / Storm / Sewer / Water CIP) $120,000 Front plow & wing / Spreader / SS box / Lights / Hydraulics / Tarp $120,000 Trade in value -$20,000 SUB TOTAL $0 $220,000 $0 $0 $0 73,700 / 5, , , Sterling LT-9500 Tandem Axle Dump Truck $135,000 Front plow & wing / Spreader / SS box / Lights / Hydraulics / Tarp $120,000 Trade in value -$20,000 SUB TOTAL $0 $0 $235,000 $0 $ / , , Ford F-350 Pickup $50,000 Front plow / Lights / Bed liner $10,000 SUB TOTAL $0 $60,000 $0 $0 $0 92, ,000 60,000

10 CITY OF MINNETRISTA PUBLIC WORKS CAPITAL IMPROVEMENT PLANS VEHICLE DESCRIPTION Sterling LT-9500 Tandem Axle Dump Truck (Replace w/single axle truck) $140,000 Front plow & wing / Spreader / SS box / Lights / Hydraulics / Tarp $125,000 Trade in value -$20,000 SUB TOTAL $0 $0 $0 $245,000 $0 REPLACEMENT POLICY CURRENT MILES/HRS YRS MIN ANNUAL MILES/HOURS MAX MILES / HOURS / , ,000 Single Axle Dump Truck (New addition to the fleet when needed for expanded plowing) Front plow & wing / Spreader / SS box / Lights / hydraulics Trade in value 10 6,000 60,000 STREETS: VEHICLE TOTAL $0 $280,000 $375,000 $460,000 $0 PUBLIC WORKS: HEAVY EQUIPMENT John Deere 624H Loader $200,000 SUB TOTAL $0 $0 $0 $0 $200, , John Deere 772CH Grader (PERFORM OVERHAUL INSTEAD OF REPLACING) $130,000 RH Wing for plowing (REPLACEMENT = $300k / OVERHAUL = $130K) Rear mounted pack & roll (ESTIMATING ANOTHER 10 YEARS OF USE) Gravel retriever SUB TOTAL $130,000 $0 $0 $0 $ ,000 15, Cat 420F2 Tractor Backhoe Trade-in (⅓ each - Storm water / Sewer / Water CIP) , Cat 315D-L Track Hoe , Bobcat S300 Skid Steer loader $75,000 SUB TOTAL $0 $75,000 $0 $0 $ , Bobcat S300 Skid Steer loader (Storm water CIP item) ,000 BOBCAT ATTACHMENTS 2001 Bobcat Auger n/a 10 n/a n/a 2011 Bobcat Snow Blower SBX 240 n/a 10 n/a n/a 2011 Bobcat Angle Broom n/a 10 n/a n/a 1997 Virnig 66" Fork Grapple n/a 10 n/a n/a 1997 E/Z Grade Bar n/a 10 n/a n/a 2010 Bobcat 72" Box Broom Sweeper n/a 10 n/a n/a 2001 Pallet Fork - replace with hydraulic forks n/a 10 n/a n/a 1998 Fork hook n/a 10 n/a n/a 1998 Tooth Bucket n/a 10 n/a n/a 2010 Rock Bucket n/a 10 n/a n/a " High-flow Planer w/18" Fast Cut All Purpose Drum n/a 10 n/a n/a Box Blade (for shouldering purposes) n/a 10 n/a n/a Hydraulic Breaking Hammer (Jackhammer)

11 CITY OF MINNETRISTA PUBLIC WORKS CAPITAL IMPROVEMENT PLANS VEHICLE DESCRIPTION REPLACEMENT POLICY CURRENT MILES/HRS YRS MIN ANNUAL MILES/HOURS MAX MILES / HOURS Kubota Tractor Rear mount PTO driven flail mower n/a , Kubota Zero Turn Mower ZD (Parks CIP item) $15,000 SUB TOTAL $0 $0 $15,000 $0 $ Fork lift STREETS: HEAVY EQUIPMENT TOTAL $130,000 $75,000 $15,000 $0 $200,000 PUBLIC WORKS: LIGHT EQUIPMENT IR P185 Air Compressor w/dual reels & jackhammer , IR DD28HF Asphalt Roller , Wacker/Neuson RD-12 Asphalt Roller , Bandit 1890 XP Chipper , Stepp SPH ton trailer unit n/a 10 n/a n/a Jumping jack style compactor n/a 10 n/a n/a Dynapacker (Plate compactor) $3,000 n/a 10 n/a n/a Stepp SMT-400 Tar Kettle (Replace with Bomag ProTack TW250) $30,000 n/a 10 n/a n/a Katolight 200 KW Generator $85, , Katolight 50 KW Generator $70, , Winco DR45 Generator ,000 STREETS: LIGHT EQUIPMENT TOTAL $0 $0 $155,000 $30,000 $3,000 PUBLIC WORKS: OTHER EQUIPMENT Street sign replacement for reflectivity guidelines set by Federal government Motorola radio lease program $8,500 $8,500 $8,500 $8,500 $8,500 STREETS: OTHER EQUIPMENT TOTAL $8,500 $8,500 $8,500 $8,500 $8, Dayton 20" drill press 2004 Wire feed welder 2004 CastAire air compressor (old shop) 2010 Quincy air compressor (new shop) PUBLIC WORKS: SHOP TOOLS STREETS: OTHER EQUIPMENT TOTAL $0 $0 $0 $0 $0 PUBLIC WORKS CIP TOTAL $ 138,500 $ 363,500 $ 553,500 $ 498,500 $ 211,500 Sewer Utility CIP item $ 55,000 $ 210,000 Storm Water CIP item $ 55,000 Water CIP item $ 55,000 $ 85,000 $ 140,000 Park CIP item $ 15,000 Street CIP item $ 190,000 $ 243,500 $ 358,500 $ 311,500 TOTAL TAX LEVY CIP $ 138,500 $ 198,500 $ 243,500 $ 358,500 $ 211,500

12 Capital Improvements Plan City of Minnetrista, Minnesota ADMINISTRATION EQUIPMENT, VEHICLES, 2019 thru 2023 Summary of Future Needs Equipment & Vehicles City Hall Office Space Improvements $3,000 $3,000 $3,000 $3,000 $3,000 Other Equipment $2,000 $2,000 $2,000 $2,000 $2,000 Technology Improvements $15,000 $15,000 $15,000 $15,000 $15, Technology project $15,000 $0 $0 $0 $0 City Server Replacements $0 $0 $0 $0 $0 Phone System $13,000 $0 $0 $0 $0 Municipal Code Update $0 $10,000 $0 $0 $0 Election equipment $0 $5,000 $0 $0 $0 $48,000 $35,000 $20,000 $20,000 $20,000

13 Version 1 Tax Calcuations using Proposed 2019 Budget Draft Dollars Percentage Inc/Dec Inc/Dec General 3,211,041 3,275,262 64, % holds general levy at 2% by using fund balaance Capital #DIV/0! Debt 912,609 1,016, , % 2017 Street projects- full year amount - potential equip certs?? Roads 350, , , % still have $125 K in per planned phase in Fiscal Disparities (116,040) (116,040) % Total Net levy 4,357,610 4,650, , % Gross levy 4,473,650 4,766, , % Current Tax Rate Projected tax rate 25.74% 25.70%

14 Version 2 Tax Calcuations using Proposed 2019 Budget Draft Dollars Percentage Inc/Dec Inc/Dec General 3,211,041 3,275,262 64, % holds general levy at 2% by using fund balaance Capital #DIV/0! Debt 912,609 1,016, , % 2017 Street projects- full year amount - potential equip certs?? Roads 350, ,000 50, % drops down to incremental increase of $50K Fiscal Disparities (116,040) (116,040) % Total Net levy 4,357,610 4,575, , % Gross levy 4,473,650 4,691, , % Current Tax Rate Projected tax rate 25.74% 25.29%

15 2019 Proposed Debt Levy Breakdown Debt Mound Fire Facility $ 72,000 $ 72,000 Game Farm South Bay $ 122,609 $ 122,609 Maple Crest $ 20,500 $ 20,500 Public Facilities $ 368,000 $ 368, Street Projects - new $ 75,000 $ 118,000 phased in - now at full amount 2015 Equip Certs $ 70,000 $ 70, Equip Cert $ 79,000 $ 82, Equip Cert $ 55,500 $ 57, Equip Cert - new $ 50,000 $ 45,000 Interfund Loan?? 2019 Equip Cert - new $ - $ 60,000 Other financing source - potentiallly reduce CIP through budget process Other Debt Total $ 912,609 $ 1,016,109